BlackRock files with SEC to add Staking feature to Ethereum ETF

BlackRock is looking to add a staking feature to its spot Ethereum ETF. #NASDAQ has submitted a request to amend rule 19b-4 to the U.S. Securities and Exchange Commission (SEC) on Thursday to allow BlackRock's iShares Ethereum Trust (ETHA) to incorporate this feature.

The goals and impacts of adding Staking

Adding staking to ETHA will allow this fund, launched last July, to earn profits by using the $ETH it holds to validate transactions on the Ethereum blockchain. Other issuers like Fidelity, Grayscale, and 21Shares are also looking to integrate staking into their funds.

The staking feature is contentious, with proponents arguing it will increase profits, while critics express concerns about security vulnerabilities and market manipulation. Although the initial prospectuses for ETHA and eight other Ethereum funds did not mention staking, this 19b-4 proposal has removed that section and proposed new language to allow it.

The Ethereum fund of #BlackRock⁩ is the most successful in this category, generating over $7 billion in net inflows, double that of any other fund. Ethereum ETFs in general have surged in recent weeks, attracting over $2.2 billion in net investments for nine consecutive days. #anhbacong